Press Release

Press Release

October 07, 2026

LOKHANDWALA KATARIA CONSTRUCTION PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Non Convertible Debentures (NCD)	90.00	0.00	ACUITE C \| Assigned	-	SEBI
Non Convertible Debentures (NCD)	160.00	0.00	ACUITE C \| Reaffirmed	-	SEBI
Non Convertible Debentures (NCD)	364.00	0.00	ACUITE D \| Reaffirmed	-	SEBI
Total Outstanding	614.00	0.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuité has reaffirmed its long term rating of ‘ACUITE D’ (read as ACUITE D) on Non Convertible Debentures (NCDs) issue of Rs.364.00 Cr. of Lokhandwala Kataria Construction Private Limited (LKCPL).

Acuité has reaffirmed its long term rating of ‘ACUITE C’ (read as ACUITE C) on Non Convertible Debentures (NCDs) issue of Rs.50.00 Cr. and Proposed Non Convertible Debentures (NCDs) of Rs.110.00 Cr. of Lokhandwala Kataria Construction Private Limited (LKCPL).

Acuité has assigned its long-term rating of ‘ACUITE C’ (read as ACUITE C) on the Proposed Non Convertible Debentures (NCDs) of Rs.90.00 Cr. of Lokhandwala Kataria Construction Private Limited (LKCPL).

Rationale for rating
The rating continues to be constrained by delays in servicing interest obligations on the existing NCDs, attributable to cash flow mismatches in Project Minerva. Delays in payment of interest obligations have been observed during April, May, June, July and August 2026. Further, the rating on the proposed NCDs remains constrained by the persistent liquidity challenges in the project.

About the Company

Incorporated in 1998, Mumbai based LKCPL is owned by the Lokhandwala family, Mr. Mohammed A Lokhandwala and Mr. Aliasgar Lokhandwala. The company is currently developing a project by the name of “Minerva” in Mahalaxmi region of Mumbai for the construction of 10 rehabilitation buildings, a school, a maternity/municipal clinic, a welfare centre, a Balwadi and a saleable building 362 apartments. The project began in May 2011.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of the LKCPL to arrive at this rating.

Key Rating Drivers

Strengths

Experienced management and long track record of operations
LKCPL is promoted by Mr. Mohammed A Lokhandwala and Mr. Aliasgar Lokhandwala who are all seasoned industry veterans managing the day to day operations of the company. The promoters of the company have amassed more than two decades of experience in the real estate industry via their association with the group companies. Further, the company has a track record of operations of more than two decades in the aforementioned line of business. The vast experience of the management, coupled with the long track of operations of the company has enabled LKCPL to execute numerous big projects in the region of Mumbai as well as overseas.

Weaknesses

Continued delays in debt servicing
The rating continues to be constrained by delays in servicing interest obligations on the existing NCDs on account of cash flow mismatches in Project Minerva. Delays in debt servicing were observed during April, May, June, July and August 2026, indicating sustained pressure on liquidity

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Timely servicing of debt obligations

Potential triggers (individual or collective) for a downward rating action:

Continued delays in servicing of debt

All Covenants

Covenants on the Listed NCD of Rs.50 Cr and proposed to be listed NCD of Rs.200 Cr,

1) Sales milestones and minimum sales price for Project Minerva. In case of any sales below the agreed minimum average sales price and if the average price achieved is below the underwritten numbers / agreed Business Plan, Obligor(s) to infuse equity equivalent to the difference in sale proceeds.
2) Covenant to take consent of the Investor for any new registration of sale in Project Minerva
3) Receivable milestones to be mutually decided in the Transaction Documents as per the agreed business plan
4) Negative covenant for any disposal of Project Minerva or any cashflows from Project Minerva to be used for repayment of any other debt or payment of dividend
5) Obligor(s) to share a detailed business plan with to the satisfaction of Investor(s).
6) Financial covenants to be included in the Transaction Documents as required by Investor(s) as is customary for such transactions.
7) Information covenants to be included in the Transaction Documents as required by Investor(s) as is customary for such transactions.
8) Affirmative covenants and negative covenants to be included in the Transaction Documents as is customary for such transactions.
9) Covenant to take consent of the Investor for any material change in plans and designs of Project Minerva

Additional covenants shall be included in the Transaction Documents as mutually agreed based on the completion of due diligence.

Liquidity Position

Stretched

The company's liquidity position is marked as stretched due to delays in servicing interest obligations on its NCDs. Delays in interest payments have been observed during April, May, June, July and August 2026. The company generated negative cash accruals of Rs.250.86 Cr in FY2026 against its repayment obligation of Rs.101.45 Cr during the same period. The recurrent instances of delayed debt servicing reflect pressure on the company's liquidity profile.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	290.64	296.28
PAT	Rs. Cr.	(250.93)	(315.85)
PAT Margin	(%)	(86.34)	(106.60)
Total Debt/Tangible Net Worth	Times	(0.82)	(0.96)
PBDIT/Interest	Times	(0.05)	(0.14)

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
05 Jun 2026	Proposed Non Convertible Debentures	Long Term	160.00	ACUITE C (Assigned)
	Non-Covertible Debentures (NCD)	Long Term	50.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	149.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	90.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	75.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	11.00	ACUITE Not Applicable (Withdrawn)
	Non-Covertible Debentures (NCD)	Long Term	39.00	ACUITE Not Applicable (Withdrawn)
	Non-Covertible Debentures (NCD)	Long Term	25.00	ACUITE Not Applicable (Withdrawn)
30 Dec 2025	Non-Covertible Debentures (NCD)	Long Term	50.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	149.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	90.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	25.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	75.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	11.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	39.00	ACUITE D (Reaffirmed)
30 Dec 2024	Non-Covertible Debentures (NCD)	Long Term	50.00	ACUITE D (Downgraded from ACUITE C)
	Non-Covertible Debentures (NCD)	Long Term	149.00	ACUITE D (Downgraded from ACUITE C)
	Non-Covertible Debentures (NCD)	Long Term	90.00	ACUITE D (Downgraded from ACUITE C)
	Non-Covertible Debentures (NCD)	Long Term	25.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	75.00	ACUITE D (Downgraded from ACUITE C)
	Non-Covertible Debentures (NCD)	Long Term	11.00	ACUITE D (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	39.00	ACUITE D (Reaffirmed)
18 Oct 2024	Non-Covertible Debentures (NCD)	Long Term	50.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	149.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	90.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	75.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	11.00	ACUITE D (Downgraded from ACUITE C)
	Non-Covertible Debentures (NCD)	Long Term	39.00	ACUITE D (Downgraded from ACUITE C)
	Non-Covertible Debentures (NCD)	Long Term	25.00	ACUITE D (Downgraded from ACUITE C)
20 Dec 2023	Non-Covertible Debentures (NCD)	Long Term	90.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	25.00	ACUITE C (Assigned)
	Non-Covertible Debentures (NCD)	Long Term	75.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	11.00	ACUITE C (Assigned)
	Non-Covertible Debentures (NCD)	Long Term	39.00	ACUITE C (Assigned)
	Non-Covertible Debentures (NCD)	Long Term	50.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	149.00	ACUITE C (Reaffirmed)
24 Aug 2023	Non-Covertible Debentures (NCD)	Long Term	90.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	149.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	50.00	ACUITE C (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	75.00	ACUITE C (Reaffirmed)
	Proposed Non Convertible Debentures	Long Term	25.00	ACUITE Provisional C (Reaffirmed)
	Proposed Non Convertible Debentures	Long Term	39.00	ACUITE Provisional C (Assigned)
	Proposed Non Convertible Debentures	Long Term	11.00	ACUITE Provisional C (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	INE999H07033	Non-Convertible Debentures (NCD)	Listed	SEBI	02 Nov 2020	7.00	26 Oct 2026	50.00	Simple	ACUITE D \| Reaffirmed
Not Applicable	INE999H07058	Non-Convertible Debentures (NCD)	Listed	SEBI	01 Dec 2020	7.00	26 Oct 2026	149.00	Simple	ACUITE D \| Reaffirmed
Not Applicable	INE999H07082	Non-Convertible Debentures (NCD)	Listed	SEBI	22 Nov 2022	7.00	26 Oct 2026	90.00	Simple	ACUITE D \| Reaffirmed
Not Applicable	INE999H07074	Non-Convertible Debentures (NCD)	Listed	SEBI	20 Apr 2022	7.00	26 Oct 2026	75.00	Simple	ACUITE D \| Reaffirmed
Not Applicable	INE999H07108	Non-Convertible Debentures (NCD)	Listed	SEBI	16 Sep 2026	7.00	30 Sep 2028	50.00	Simple	ACUITE C \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Non Convertible Debentures	Proposed to be Listed	SEBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	110.00	Simple	ACUITE C \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Non Convertible Debentures	Proposed to be Listed	SEBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE C \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Non Convertible Debentures	Proposed to be Listed	SEBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	75.00	Simple	ACUITE C \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sanidhya Jain
Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.